The International Monetary Fund in its World Economic Outlook (WEO) report was released on 22 April 2025. The report predicted that India is set to overtake Japan to become the fourth-largest economy in the world in the year 2025. The list of the top 10 economies in the world is as follows, according to GDP in US$:
- United States: GDP current prices are $30.51 trillion.
- China: GDP current prices at $19.23 trillion
- Germany: GDP current prices at $4.74 trillion
- India: GDP current prices are $4.19 trillion
- Japan: GDP current provides a $4.19 trillion
- United Kingdom: GDP current prices at $3.84 trillion.
- France: GDP current prices are at $3.21 trillion.
- Italy: GDP current prices are  $2.42 trillion.
- Canada: GDP current prices are at $2.23 trillion.
- Brazil: GDP current prices are at $2.13 trillion.
India has officially surpassed Japan to become the world’s fourth-largest economy, with a nominal GDP of approximately $4.19 trillion in 2025, according to the International Monetary Fund (IMF). This milestone reflects India’s rapid economic growth and its increasing influence on the global stage.
On 25 May 2025, citing International Monetary Fund(IMF) data, said that India has overtaken Japan to become the world’s fourth-largest economy. Indian public policy think tank NITI Aayog’s Chief Executive Officer (CEO), BVR Subrahmanyam, said that India has overtaken Japan to become the world’s fourth-largest economy. The official IMF data of gross domestic product (GDP) for 2025 marked India’s position at $4.19 trillion based on the current prices.Â
In response to a question about US President Donald Trump’s recent comment that he expects Apple iPhones sold in the US to be manufactured in America and not in India or any other place, Subrahmanyam noted, “What the tariff will be, is uncertain. Given the dynamics, we will be a cheap place to manufacture.”
Factors contributing to India’s Economic Growth:
India’s economy has demonstrated remarkable growth, with a projected GDP expansion of 6.2% in 2025, outpacing other major economies. This growth is fueled by strong domestic consumption, increased capital spending, and a burgeoning workforce. Another important reason for India’s economic growth is the median age of 28, which means youth has increased in the coming economic demand, driving economic expansion. Amidst a push for ‘Atmanirbhar Bharat,’ India’s defense exports reached a record high of Rs. 23,622 crore (approximately $2.76 billion) in the last financial year 2024-25. As compared to the previous fiscal year figure of Rs. 21,083 crore, this represents an increase of Rs. 2,539 crores, equivalent to a 12.04 % growth.
With the government initiatives such as “Make in India” launched on 25th September 2014, it attracted foreign investment and boosted the manufacturing and services sectors. The foreign direct investment taken place in India includes sectors like
India’s information technology and business process outsourcing (BPO) sectors have been significant contributors to economic growth. The country’s skilled workforce and technological capabilities have positioned it as a global IT hub.
India’s economy has shown resilience in the face of global uncertainties, maintaining steady growth and attracting investments. This stability has bolstered investor confidence and supported economic advancement.
India is poised to continue its upward trajectory, with projections indicating it could become the third-largest economy by 2027-28, surpassing Germany. Sustained reforms, infrastructure development, and investment in human capital will be crucial in achieving this milestone. Keep reading Questiqa.in for more such news and analysis.
